CG64200 - Private residence relief: introduction: scheme of relief

The content in this manual covers a much higher level of detail compared to say a Helpsheet supporting the Self Assessment Tax Return. If you are looking for an introduction to the main rules for the relief for a particular year, please see the Private Residence Relief (Self Assessment helpsheet HS283) on GOV.UK and select the year you are considering.

Private residence relief is given by s222 TCGA92 to s226 TCGA92. The purpose of the relief is to enable a person to replace their existing home with another home of similar value by ensuring that the proceeds of sale of the old home are not diminished by a charge to Capital Gains Tax. So in most cases the gain arising on the disposal of a person's home is relieved from Capital Gains Tax. 

Private residence relief is available where a gain arises from the disposal of an interest in 

  • dwelling-house, or 
  • part of a dwelling-house 

which has at some time been its owner’s only or main residence, by s222 (1)(a), TCGA92 (see CG64230+), or 


  • the garden or grounds of that residence up to the permitted area, by s222 (1)(b), TCGA92 (see CG64350+). 

A residence which is outside the United Kingdom may qualify for relief if the conditions in this guidance are met. 

The garden or grounds includes the buildings standing on that land, see s288 TCGA92. So a building which is not part of the dwelling-house can still qualify for relief if it is within the permitted area of garden or grounds.